Do you know NFT or CryptoArt?

August 1, 2022

We have already stated here that the NFT (Non-fungible Token) is a novelty that has recently exploded in the digital world and that it can be produced and acquired by anyone, in auctions that can reach millions of dollars.

But let's break it down: first, what is NFT?

In short, it is a digital certificate that has blockchain, giving an exclusivity to what is being sold. So yes, for artists, collectors and even investors, the physical world can go digital, selling their unique art as many times as they want or limiting it to just one piece.

And then you ask yourself: but is necessary to be an artist to use it?

The answer is no! With the NFT boom, many people are selling whatever they want, as long as it is digital. There have already been millionaire cases of people who sold the first famous tweets, viral gifs, songs, videos and even reproductions of famous art.

Interested? So go on, there is more!

After all, how do these NFTs work?

The operation can be similar to the deed of a house. In this case, the NFT would be the deed and not the asset itself.

In fact, they can be generated and defined by anyone who has access to the digital world. But that does not mean that your jpeg, gif or print will be worth something to exchange or be bought for money in the crypto art market.

Owning an NFT is like telling other people that you own a Mona Lisa and that this art is yours alone and you can do whatever you want with the art. In short, it is a collector's or investor's item, since that piece, being unique, can increase its value.

A good example for the theme is the game CryptoKitties - digital kittens of a game linked to the cryptocurrency Ethereum. This game consists of a large digital marketplace of cats that are marketed by the NFT, giving each kitten exclusivity.

Each one is different and unique, adding value to the market and making players always seek to have the most valuable pieces. To give you an idea, the most valuable CryptoKitties today sell for over USD 100K.

Another recent and very famous case in this scope is NBA Top Shot, which has made its record and now sells exclusive snippets of famous shots from the basketball world. And those little videos have already yielded more than USD 200 million. Highlighting a single LeBron James bid that was purchased for USD 208,000.

And it is not everything on this matter! In this environment, we already have famous brands like Nike, famous actors, singers and even companies that spent thousands of dollars on a panel by the artist Banksy, just to burn it and sell their own video burning the art as NFT, raising USD 382,000, four times the value of the arts.

After seeing these giant numbers, you have got interested in selling a tweet from a famous person, right!?

And how do I get into that environment?

NFTs are traded on NFT markets such as Nifty Gateway, OpenSea or Rarible.

Sales are made through auctions with initial values. If you end up winning the auction, the NFT becomes yours and can soon be resold to try to make a profit or to have a collection. But those who think that, if buying the NFTs for 10, they will sell the pieces for 20.

Since they do not generate any cash flow nor royalties, the only way to earn more from an NFT is for someone to come along and think it is worth the amount you are requesting.

But not everything is perfect!

They bring so many problems to the environment that it is scary!

A case that became known had the artist and environmentalist Chris Precht involved. He canceled the sale of more than 300 exclusive pieces for the NFT, having seen that they would use the same amount of electricity that a person living in Europe would spend in two decades. It is no exaggeration, creating NFT takes a lot of energy!

So no, NFT is not sustainable at all! It stores a technology mentioned above, the Blockchain, which requires large amounts of greenhouse gas emissions into the atmosphere because it spends a lot of energy over a long period of time. The cause of this problem is the Ethereum platform. When an artist uploads his/her art, he/she starts mining the cryptocurrency, causing the computer to spend energy beyond normal to be able to handle the platform responsible for the contracts.

While it is a great way for many artists to sell digitally, it is a bad choice for the environment.

Stay tuned about the digital world news with MAVERICK 360!

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